We recently published a list of 10 Stocks With At Least $20 Million In Insider Spending Recently. In this article, we are going to take a look at where Atai Life Sciences N.V. (NASDAQ:ATAI) stands against other stocks with at least $20 million in insider spending recently.
As the stock market navigates a complex environment shaped by recent trade policies, mixed economic signals, and new geopolitical circumstances, investors must remain vigilant. While many experts raise concerns about potential increased volatility under Trump, some analysts believe he is the most pro-stock market president in U.S. history.
On Monday, one day before Trump’s 25% tariffs on goods imported from Canada and Mexico into the U.S. were set to take effect, markets declined. The broader market fell 1.8%, marking its biggest one-day drop of the year, while tech stocks saw a 2.6% decline.
“No room left for Mexico or for Canada,” Trump said at the White House on Monday. “The tariffs, you know, they’re all set. They go into effect tomorrow.”
With no certainty about how long these fluctuations will continue, investors seem to be growing more cautious. While it’s difficult to predict what will happen next, some experts believe that the U.S. Federal Reserve might cut interest rates.
Equity strategists in a Reuters poll project that the broader market will finish the year 9% higher than its current level. Morgan Stanley’s Andrew Slimmon suggests that the adoption of AI could lead to a productivity boom, similar to what happened with the Internet in the late 1990s.
Amid market fluctuations and uncertainty, insider trading also comes into focus. Executives and insiders, with their valuable insights into company strategy, plans, and future moves, may have trades worth analyzing. For example, when a CEO or CFO invests their own money in company shares, it can signal strong confidence in the company’s potential.
However, it is important to highlight that both insider buying and selling can be driven by various motives; therefore, these actions should be considered only within a broader context of the company’s fundamentals, industry trends, and market conditions. This is why due diligence is crucial before making any investment. Insider trading activity, along with other relevant factors, can offer valuable insights into a company’s capabilities, helping investors make more informed decisions.
Today, we will focus on stocks that have seen at least $20 million in insider spending recently. For this purpose, we used Insider Monkey’s insider trading stock screener, focusing on stocks where at least one insider purchase over the last three months was valued at $20 million or more. Although the total value of insider purchases during this period may be higher, only those worth $20 million or more were considered in this search. Since there were more than 10 stocks meeting this criterion, we selected the 10 stocks with insider purchases ranging from $20 million to $35 million, choosing those with the highest amounts within this range for further analysis.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
For each stock, we provide details on the highest individual purchase, the number of insider purchases between $20 million and $35 million over the last three months and the company’s current market capitalization.
A close-up of a medical professional providing advice to a patient struggling with opioid use disorder.
Atai Life Sciences N.V. (NASDAQ:ATAI)
Highest Individual Purchase: $22,755,007.80
Number of Purchases Worth Between $20 million and $35 million: 1
Market Capitalization: $290.99 million
Atai Life Sciences N.V. is a psychedelics company. It is focused on developing and investing in various treatments for depression, anxiety, addiction, and other mental health disorders. Among its leading product candidates are COMP360, a proprietary psilocybin, which is in the Phase 3 program, and VLS-01, a DMT treatment for treatment-resistant depression.
The company, headquartered in New York and Berlin is also considered one of 12 best psychedelic stocks to buy in 2025.
On February 14, one insider acquired $22.76 million worth of Atai shares at a price of $2.10 per share. Currently, the stock is trading at $1.50 per share, having gained 12.78% year-to-date.
For the third quarter of 2024, Atai reported cash, cash equivalents, restricted cash and short-term securities of $101.0 million compared to $154.2 million as of December 31, 2023. The company attributed the decrease to $58.1 million net cash used in operating activities, $10.0 million for the Beckley Psytech investment, and a $7.7 million investment to advance its programs, among others. Atai stated that its cash position is enough to support operations into 2026. Net loss amounted to $26.3 million, compared to a net income of $44.2 million in the same quarter of 2023.
Four analysts have an average “Strong Buy” on Atai stock, with a 12-month stock target of $9. This reflects a 500% increase from the previous price, according to StockAnalysis.
Overall, ATAI ranks 6th on our list of stocks with at least $20 million in insider spending recently. While we acknowledge the potential of ATAI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
